The Ease with Which an Asset Can Be

question 60

Multiple Choice

The ease with which an asset can be

• A)traded for another asset determines whether or not that asset is a unit of account.
• B)transported from one place to another determines whether or not that asset could serve as fiat money.
• C)converted into a store of value determines the liquidity of that asset.
• D)converted into the economy's medium of exchange determines the liquidity of that asset.

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Definitions:

Improper Threat

A form of coercion that is illegitimate or unethical, used to induce another party to act in a manner they otherwise would not.

Assertion

An assertive declaration of truth or conviction.

Mutual Mistake

A legal concept where both parties involved in a contract have a misunderstanding about an essential fact of the agreement, potentially making the contract voidable.

Fair Market Value

The price at which an asset would exchange hands between a willing buyer and seller, each having reasonable knowledge of the relevant facts, and neither being under compulsion to transact.